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May 14, 1968 
Aviation DAILY 
Page 75

RESTRICTIVE POLICIES MAY ESCALATE, ALITALIA WARNS 
Alitalia Airlines told CAV in a brief that without a "balancing of the elements of reciprocity... more and more restrictive limitations and conditions could be devised to provide greater protection for one's own carriers."
Objecting to an examiner's recommended decision which would require Alitalia to file its schedules for approval with CAB, Alitalia said that "a schedule approval condition imposed by the U.S. as a retaliatory measure must necessarily be judged by that country as a U.S. imposition of a policy of restrictionism." 
As is well known, Alitalia said, "restrictions beget more restrictions; retaliation begets more retaliation." The carrier contended that the U.S "has for many years followed a policy of non-restrictionism and the need for a schedule approval requirement should be considered, not only with the present and future U.S.-Italy air relations in mind but also with U.S. policies on restrictionism in mind."
In its brief, Alitalia said that the Italian government's requirement for filing and approval of schedules is "one of the long standing and has never denied reciprocity of traffic to the U.S." the carrier said, however, that Italy has disapproved certain all-cargo schedules "in excess of those agreed to."

NASA AWARDS CONSTRUCTION CONTRACT FOR V/STOL WIND TUNNEL
Nasa awarded a contract for $ 1,990,000 to Western Gear Corp., Lynwood, Calif., for major construction of a wind tunnel at NASA's Langley Research Center, Hampton, Va.
The tunnel will be used for research in problems concerned with V/STOL aircraft. Research in the tunnel will be concerned with critical problems that stem from shifts between vertical and horizontal flights at low altitudes. The wind tunnel is under construction at Langley's west area and is expected to be operational in the mid-19702. The contract is for services and materials to build a test section 15 by 21.5 ft.; re-entry lip; insulated test chamber and control room; middle preparation area; mechanical and electrical room; instrumentation and power wiring; mechanical and electrical utility and dismantling and demolition required. construction will be at one end of an existing wind tunnel.
The contract involves only part of the total %5,011,00 authorization in fiscal year 1966 for the construction of the tunnel. Not included are the fan drive system; fan blades and hub; tunnel structure and foundation which are being procurred under other contracts. 

JAMES LYNCH NAMED EAL CONTROLLER
Eastern Air Lines has appointed James R. Lynch as corporate controller to be based in Miami FLA. With IBM for 16 years prior to joining the airline, his new post will also include cost accounting and preparation of the corporate budget. He succeeds Charles J. Simons, who was promoted last December to v.p. and chief financial officer.

RUSSELL C. STANLEY Jr. has been named manager for Allison 501 sales by Aviation Power Supply, Inc., Burbank, Calif. Stanley comes to APS after 15 years with the Allison division of General Motors in Indianapolis, where, as senior service engineer, he supervised the 501 project from its beginning. He will report directly to Elmer Hanson, v.p-sales.

AN ALLIANCE for Progress credit of $9,945,000 has been authorized by the Export-Import Bank for Varig, the Brazilian international flag carrier. The credit will assist in financing the purchase of three Boeing 727-320C jets, The Chase Manhattan Bank, N.A., is extending the same sum in credit to the carrier. Repayment of all financing is in 28 quarterly installments beginning in November.